Wednesday, March 7, 2012

$EURUSD closed +300 pips

Ended up closing the EURUSD trade today that I entered on 2/24. When it made a new low under my original 1st target of 1.3100 before revising it, I moved the stop just below 1.3150 to lock in +300 pips, which is about a 5:1 reward/risk ratio. The trailing stop was triggered today, closing out my position.

$EURUSD - 240m - 3/7/2011

I admit, after the fakeout breakout above the obvious 1.3150-60 level earlier today failed (1), and a new swing low below 1.3100 was printed (2), I didn't expect the 1.3150 area to get retested.

But in this rumor driven market, 50-60 pips can take place within minutes, and my trailing stop was triggered relatively quickly (3).

In hindsight, I should have kept the trailing stop loss order well above the prior day's high, which means I would still be in the short position right now.

But once I realized that my original target of 1.3100 was retested and failed, I probably got too aggressive with my trailing stop.

Live and learn, but at least this ended up being a respectable swing trade...NEXT!